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Under Armour will cut about 3 percent of its global workforce

The athletic apparel company known for its compression T-shirts and performance clothing has been struggling as competition heated up

Under Armour said Thursday its restructuring program will now cost more than it previously expected: It plans to cut about 400 jobs, or about 3 percent of its global workforce, by March.

Under Armour shares jumped more than 5 percent on the news.

The athletic apparel company known for its compression T-shirts and performance clothing has been struggling as competition heated up, and rivals like Nike and Adidas have stolen market share. Some retail watchers have also criticized the company as it expanded to new retail channels, saying these steps hurt the exclusivity of its brand.

Under Armour said it now sees costs in the range of $200 million to $220 million tied to the effort, up from a prior forecast of $190 million to $210 million, due to about $10 million in severance charges.

The company also raised the lower end of its fiscal 2018 earnings forecast, with estimates now in the range of 16 cents to 19 cents per share on an adjusted basis. Previously, it put earnings at 14 cents to 19 cents per share after adjustments.

"This redesign will help simplify the organization for smarter, faster execution, capture additional cost efficiencies, and shift resources to drive greater operating leverage as we move into 2019 and beyond," Chief Financial Officer David Bergman said in a statement.